Seoul shares end 1.7 pct lower on exporters' falls

SEOUL, Oct. 1 (Yonhap) -- South Korean stocks closed 1.7 percent lower Thursday
as exporters tumbled due to the local currency's recent ascent, analysts said.
The local currency inched down against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) shed 28.51 points to
1,644.63. Volume was moderate at 332.5 million shares worth 6.92 trillion won
(US$5.87 billion), with losers outpacing gainers 564 to 235.
"Foreign investors' stock sales weighed down on the broader market. The local
currency's recent steep gains also hurt shares of exporters," said Bae
Sung-young, an analyst at Hyundai Securities.
Bae said investors will await a U.S. job report to gauge the pace of economic
recovery in the world's largest economy.
The won's recent sharp gains dented shares of exporters amid fears a
strengthening currency could eat into their profitability. Market leader Samsung
Electronics declined 2.82 percent to 792,000 won and leading consumer electronics
giant LG Electronics tumbled 6.77 percent to 117,000 won.
Top automaker Hyundai Motor plunged 8.07 percent to 102,500 won and its affiliate
Kia Motors declined 6.72 percent to 17,350 won.
Shipbuilders traded in negative territory, affected by a report that ailing
French shipping line CMA CGM may cancel vessel orders with local shipbuilders as
part of a debt restructuring plan. Top shipyard Hyundai Heavy Industries fell 2.5
percent to 175,500 won and Hyundai Mipo Dockyard nosedived 9.24 percent to
113,000 won.
After roller-coaster trading, the local currency ended at 1,178.3 won against the
greenback, down 0.2 won from Wednesday's close, after the government said foreign
exchange authorities believe herd behavior in the market is excessive and will
take action if necessary, dealers said.
The Korean unit climbed sharply against the greenback in the morning session,
with its intraday high reaching 1,166.6 won as exporters unloaded dollars and the
pace of decline in exports eased in September. The won's ascent was later
reversed after a verbal intervention and suspected dollar buying by the
authorities, they added.
The local financial markets will close Friday for the "Chuseok" fall harvest
holiday.
sooyeon@yna.co.kr
(END)